Labour minister pushes for 'deal at the table' after Canada Post union issues strike notice

Canada Post temporarily lays off some employees Canadian Union of Postal Workers negotiator Jim Gallant discusses what the union is calling an intimidation tactic by Canada Post.

Labour Minister Steven MacKinnon says the federal government currently has no plans to intervene in negotiations after the union representing Canada Post workers issued a 72-hour strike notice on Tuesday morning.

“We are hoping to achieve a deal at the table,” MacKinnon said during a press conference on Tuesday. “The issues at hand in the Canada Post negotiations are substantial. They’re significant.”

“There's a lot of work to do, and I know the parties are negotiating today,” he added. “We will make every effort possible to keep them at the table and keep them talking, and we hope to achieve a negotiated settlement there.”

When pressed, MacKinnon insisted the government’s plan is to “support collective bargaining,” and that it’s “put all the resources that are required into supporting the parties” in place, namely “mediation support.”

If it came to it, the Liberals may be challenged in advancing back-to-work legislation through the House of Commons, as work in the chamber has been largely stalled since September, due to a Conservative-led privilege debate.

Both sides of the bargaining table, meanwhile, have expressed disappointment at the current state of the negotiations.

Canada Post workers have a slate of demands, including wage increases in line with inflation, “improved staffing provisions,” increased paid medical days, paid meals and rest periods, and improved rights for temporary employees.

According to a statement from the union representing Canada Post workers, it’s undecided whether job actions will take place immediately, though they’ll legally be in position to strike as of Friday.

Next steps will be determined based on Canada Post’s actions at the bargaining table, the statement reads.

“We haven’t decided how the strike would look, we're hoping to get a negotiated contract to avoid having a strike action actually take place,” CUPW national president Jan Simpson told CTV News Channel.

“We're trying to get a fair wage, we're trying to improve health and safety issues, we're trying to ensure that we can retire with dignity, with our pensions, as well as expand the public post office,” she also said.

Simpson added “arbitrated contracts are not good for anyone,” and the union hopes Canada Post will “come to the table with real solutions” to address both parties’ concerns.

The union national president said negotiations have been going on for nearly a year, but there hasn’t been “much movement” in that time.

In a statement released Tuesday, Canada Post said it will continue delivering mail even if the union initiates rotating strike activity. Benefit cheques, including those for the Canada Child Benefit, Old Age Security and the Canada Pension Plan, will also continue to be delivered despite any disruptions.

“Canada Post has notified the union that unless new agreements are reached, the current collective agreements will no longer apply as of Friday,” the statement reads. “The Corporation will then be in a position, using the means provided in the Canada Labour Code, to adjust operations based on its operational realities and business needs.”

The company said the challenges it’s facing will “intensify” if it does not adapt to compete with today’s parcel delivery market.

And in a bargaining update issued last week, Canada Post called the negotiations “less productive than hoped for.”

“Urgency is needed at the table and we remain hopeful that further discussions will afford a breakthrough,” it also reads. “However, our deteriorating financial situation, and the impact on our customers, could require the company to revisit its proposals.”

According to Canada Post, the company lost about $748 million last year, and $490 million just in the first half of this year.

Despite increasing the price of stamps, Canada Post says it will “fall below required operating and reserve cash requirements by early 2025” without additional borrowing.

“Seven-day delivery is absolutely critical,” Canada Post spokesperson Jon Hamilton said in an interview with CTV News on Tuesday. “Having a flexible delivery model that allows us to provide different services and more affordable services is absolutely critical.”

“The parcel business has changed so much in just the last few years coming out of COVID,” he added. “The competition is just insane.”

Hamilton said the company hopes to find a resolution to the labour dispute as soon as possible, especially so it can evolve to compete in the delivery market. Without those framework changes to the business, he says, it can’t afford to meet the union’s demands.

With files from CTV News’ Colton Praill